Minutes of the ISD June 7, 2016 Board Meeting

MINUTES OF THE REGULAR MEETING

OF THE BOARD OF DIRECTORS OF THE

IRONHOUSE SANITARY DISTRICT

 

June 7, 2016

 

The Board of Directors of the Ironhouse Sanitary District (ISD) met in regular session on Tuesday, June 7, 2016, in the Board meeting room at ISD’s offices at 450 Walnut Meadows Drive, Oakley, California.

 

1.       Call to Order

The meeting was called to order by President Doug Scheer at 7:00 p.m.

Mr. Davisson led the pledge of allegiance.

 

          Roll Call

            Directors present:                    David Contreras, Susan Morgan, Doug Scheer, and Michael Painter.

            Members absent:                     Chris Lauritzen

            Staff/Consultants Present:

                                                            Chad Davisson, General Manager

                                                            Susan Walde, District Secretary

                                                            Michael Welty, Financial Officer

                                                            Louis Solana, Maintenance Superintendent

                                                            Chris Christean, Plant Manager

                                                            Adrian Vazquez, Plant Operator III

                                                            Victor Benitez, Plant Operator II

                                                            Roni Gehlke, Outreach Consultant

 

            Interested Parties:                   Stan Caldwell, Contra Costa Special District’s Association

                                                            Patty Finfrock, Department of Water Resources

Randy Mager, Department of Water Resources

 

            Pledge of Allegiance:              Led by Chad Davisson

 

2.       STAFF RECOGNITION - New Employees Adrian Vasquez and Victor Benitez

Staff introduced the two new employees at the Water Recycling Facility.  Victor Benitez, Plant Operator II, was an Operator in training and a volunteer at the facility previously, and Adrian Vazquez, Plant Operator III.  President Scheer welcomed them to the ISD staff.

 

3.       PRESENTATIONS –

3A.     District Transparency Certificate of Excellence presented by Special District Leadership Foundation.

Mr. Stan Caldwell, Board of Directors of California Special Districts Association (CSDA) and Special District Leadership Foundation (SDLF), on behalf of SDLF, stated he is proud to present this District Transparency Certificate of Excellence to Ironhouse Sanitary District in recognition of the District’s completion of all transparency program requirements.  This Certificate of Excellence is designed to promote transparency in operations and governance to the public and other stakeholders.  He commended the District for their outstanding Outreach Program and has used ISD as an example in the newsletters with their outreach endeavors.  President Scheer accepted the award on behalf of the District. 

 

3B.     Update on the Dutch Slough Restoration Project by the State Department of Water Resources.

Ms. Patty Finfrock of the Department of Water Resources (DWR) gave a presentation to the Board on the Dutch Slough Tidal Marsh Restoration Project.  The project will restore tidal marshland in the project area creating habitat for native species.  Ms. Finfrock discussed that DWR is proposing access to the vineyards through ISD property using the Parks and Recreation Department’s bridge to access the property.  General Manager Davisson stated that he has met with DWR representatives on this issue and will keep the Board apprised of developments.  The Board thanked DWR staff for the presentation and the update with the progress of the project.

 

4.       APPROVAL OF AGENDA                     

M/S D. Contreras, S. Morgan and the Board voted to approve the agenda. 

In favor: D. Contreras, S. Morgan, M. Painter and D. Scheer.  Opposed: None.  Absent: C. Lauritzen.

 

5.         APPROVAL OF THE MINUTES of the May 3^rd regular meeting, the May 17^th special meeting and the May 24th special meeting.

M/S D. Contreras, S. Morgan, and the Board voted to approve the minutes of the May 3, 2016 regular meeting of the Board with amendments given to the District Secretary. 

In favor: D. Contreras, S. Morgan, and D. Scheer.  Opposed: None.  Absent: C. Lauritzen.  Abstained: M. Painter.

M/S D. Contreras, S. Morgan, and the Board voted to approve the minutes of the May 17, 2016 special meeting and the May 24, 2016 special workshop meeting of the Board with amendments given to the District Secretary. 

In favor: D. Contreras, S. Morgan, M. Painter and D. Scheer.  Opposed: None.  Absent: C. Lauritzen.

 

6.       PUBLIC COMMENTS.  Communications from the public on subjects not on the agenda. 

There were no comments from the public in attendance.

 

7.       CONSENT CALENDAR –

 

          7A.    Approval of Payment Order, Report on Financial Position & Operating Performance.

 

          7B.     Approve the Financing of Other Post-Employment Benefits (OPEB) for FY2015-16.  (B.O. 16-42)

 

          7C.     Approve a contract with Larry Walker and Associates to provide environmental consulting services on an as-needed basis through FY 2016/17, in an amount not to exceed $50,000. (B.O. 16-43)

 

          7D.     Approve a contract with V.W. Housen and Associates to provide engineering support services on an as-needed basis through FY 2016/17 in an amount not to exceed $120,000.  (B.O. 16-44)

 

          7E.     Receive and accept the 2016 updated Ironhouse Sanitary District “Policy and Procedure Manual” as required for the Special District Leadership Foundation’s “District of Distinction” certification. (B.O. 16-45)

M/S D. Contreras, M. Painter, and the Board voted to approve the Consent Calendar. 

In favor: D. Contreras, S. Morgan, M. Painter and D. Scheer.  Opposed: None.  Absent: C. Lauritzen.

 

8.       BUSINESS BEFORE THE BOARD

 

          8A.     APPROVE THE PROPOSED FISCAL YEAR 2016/17 OPERATING AND MAINTENANCE BUDGET.  (ESTIMATED 10 MINUTES)

Mr. Welty presented the Board with the proposed budget.  This budget had been reviewed at the Budget workshop on May 24, 2016.  Staff pointed out that there were two changes made to the proposed budget since the workshop. 1) An increase to the budget for a service agreement related to pond maintenance in the amount of $20,000 and 2) the proposed expense line related to the Telemetry system was decreased by $40,000.  A memo was provided to the Board discussing these proposed changes.  The changes increase the net income from $813,776 to $833,776.  Mr. Davisson reported on the proposed Employee Wellness item expense line item of $15,000.  Staff will be defining a program and bringing it back to the Board prior to expenditure. 

M/S M. Painter, D. Contreras and the Board voted to approve and adopt the proposed Fiscal Year 2016/2017 Operating and Maintenance budget.

In favor: D. Contreras, S. Morgan, M. Painter and D. Scheer.  Opposed: None.  Absent: C. Lauritzen.

 

8B.     CONSIDERATION AND ADOPTION OF RESOLUTION 16-07, CALLING THE GENERAL DISTRICT ELECTION ON NOVEMBER 8, 2016 FOR THE ELECTION OF DIRECTORS.  (Res. 16-07) (ESTIMATED 10 MINUTES).

Mr. Davisson reported that the District is an even year election.  In accordance with the elections department, ISD Directors need to call for the General District Election on November 8, 2016 and request for Consolidation pursuant to Elections Code Section 10400; the District has three seats for election this year.  The Official filing period begins July 18, 2016 and extends to August 12, 2016.

In accordance with EC 15651, the Board will need to determine the action taken in the event of a tie vote: Options include: 1) the winner shall be determined by a draw lot at a time and place designated by this Board or 2) the governing Board shall call a run-off election on the sixth Tuesday following the election at which the tie vote occurred.

There was considerable discussion clarifying the scenarios in which a tie vote would require action by the Board.  It was noted by Board Member Morgan that not all instances of a tie would require action by the Board and that the Board should only employ action in the event that a tie vote effects the outcome of the election.  Discussion was held on the process of determining a draw by lot in the case of a tie vote that requires action by the Board.  Staff recommended the Board adopt Resolution 16-07 calling the General District Election on November 8, 2016 for the Election of Directors.  Determine an action and instruct the District Secretary to report the outcome to the elections department.

 

M/S S. Morgan, D. Contreras and the Board voted to adopt Resolution No. 16-07 a Resolution Ordering Even-Year Board of Directors Election; Consolidation of Elections; and Specifications of the Election Order.  Instructing the District Secretary to complete the election report in reference to EC 15651, determining the action to be taken in the event of a tie vote that effects the outcome of the election as: In the event of a tie vote, the winner shall be determined by lot at a time and place designated by this Board.

In favor: D. Contreras, S. Morgan, M. Painter and D. Scheer.  Opposed: None.  Absent: C. Lauritzen.

 

8C.     ESTABLISH AN AD HOC COMMITTEE TO REVIEW AND RECOMMEND LEGAL SERVICE FIRMS FOR CONSIDERATION BY THE BOARD.  

Mr. Davisson reported that the District received 13 proposals for the Request for Proposal (RFP) for legal services.  It is the recommendation of staff to appoint an Ad Hoc committee to work with the General Manager to review and rank the proposals received. 

M/S D. Contreras, M. Painter and the Board voted to establish an Ad Hoc Committee of the President and Vice President of the Board along with the General Manager to participate in the review and ranking of the proposals received as part of the recent RFP solicitation process for legal counsel services.

In favor: D. Contreras, S. Morgan, M. Painter and D. Scheer.  Opposed: None.  Absent: C. Lauritzen.

 

9        GENERAL MANAGER AND STAFF REPORT

Staff reports were provided in the Board packet. 

Mr. Davisson reported to the Board on alternatives to the Marsh Creek Project.  He has been working with Denova Homes to evaluate the value of the property.  Denova identified two major issues with the land.  1) The 100 acres are in a FEMA flood zone and would need levee construction.  2) The accessibility issue – Access to the District property would be a major consideration and therefore Denova representatives determined it would not be cost effective for development.  Use of property for mitigation banking is another possible option when considering the use of this property. 

Mr. Davisson reported he met with the City of Oakley and discussion was held on a possible larger undercrossing to have access to the Walnut Meadows development as an alternative access.  He will be reporting more back to the Board after further research and will notify the Department of Water Resources (DWR) in three months of the intention of the District for the Marsh Creek project.

Mr. Davisson reported he would be out of the office on Monday and Tuesday June 13 and 14 for a General Manager’s leadership conference. 

 

10.     BOARD MEMBER ADVISORY REPORTS

Written reports submitted.

Director Morgan – Director Morgan provided a report on the June 6, 2016 Fire Board meeting by the Task Force.  Items of discussion were to go out and poll the community of potential support for a proposed user utility tax for fire and medical services.  She provided a power point summary of the presentation made to the Board by the Task Force.  

 

Director Contreras – Director Contreras reported the District will be having two booths at the City Celebration on July 2, 2016.  The event will be from 3 p.m. to 10 p.m. He reported he would like to see more Board members present to help support the District at the event.  The Insider newsletters are in the mail and should be received in a day or two.

 

11.     Future Agenda Items for Consideration

There were no future agenda items discussed. 

 

 

12.     ADJOURNMENT

President Scheer adjourned the regular meeting at 8:59 p.m. until Tuesday, June 21, 2016 at 6:00 p.m. for the Regular Meeting in the Ironhouse Sanitary District offices at 450 Walnut Meadows Drive, Oakley, California.

 

 

 

 

 

 

Minutes of the ISD May 17, 2016 Special Workshop Board Meeting

MINUTES OF THE SPECIAL MEETING

OF THE BOARD OF DIRECTORS OF THE

IRONHOUSE SANITARY DISTRICT

 

May 17, 2016

 

The Ironhouse Sanitary District (ISD) Board of Directors met in Special Session on Tuesday, May 17, 2016.

The place of the meeting was the Best Western Plus Delta Hotel, 5549 Bridgehead Road, Oakley, California.  

 

A.        Call to Order - President Doug Scheer called the meeting to order at 8:10 a.m. 

 

Pledge of Allegiance was led by Michael Welty

 

            Members present:                    David Contreras, Chris Lauritzen, Susan Morgan, Michael Painter, and Doug Scheer

 

            Members absent:                     None

 

Staff/Consultants present:      Chad Davisson, General Manager

Michael Welty, Financial Officer

Dave Dal Porto, Ranch and Levee Superintendent

Louis Solana, Maint. & Collections Supervisor

Chris Christean, Plant Manager

Susan Walde, District Secretary

Rita Giacalone, Dew Point Consulting

Charley Howard, RGS (HR Services)

            Interested parties present:       None in attendance

                                                           

B.        Approval of the Agenda M/S D. Contreras, C. Lauritzen and the Board voted unanimously to approve the Agenda. 

In favor: D. Contreras, C. Lauritzen, S. Morgan, M. Painter and D. Scheer. Opposed:  None. Absent:  None.

 

C.        Public Comments – Communications from the public on subjects not on the agenda.  There were no comments from the public at this time.

 

D.        Facilitated District Board and Staff Visioning Session.

Mr. Chad Davisson gave a brief introduction of Ms. Rita Giacalone, of Dew Point Consulting.  He stated that she has met with the Board and management staff to help bring together a vision for the District for a time of change and a time of evolution.

Ms. Giacalone stated to imagine ISD three years from now.  What would success look like:  She provided an agenda for the meeting:

Agenda

• Who Are We?
• Develop agreements about high level goals and priorities.
• Envision a preferred future that is compelling and mutually desired.
• Re-build trust and confidence in staff.
   

ISD Values

• Accountability
• Transparency
• Trust
• Collaboration
   

Mission Statement – Who Are We?

“We protect public health, safety and the environment through responsible wastewater collection, treatment and water reuse”

 

The Board and Management Staff proceeded to work together in the following exercises to help develop the future of ISD.

 

VALUES EXERCISE

 

TRUST	ACCOUNTABILITY
Respect in all directions Sincerity and honesty Shared goals and values Effective, open and honest communication Confidence and competence! No preconceived biases Consistent action:  trust is EARNED over time Follow-through Reliability Timely delivery and communication Deliver on promises   The Board sees greater: Ø  Consistency Ø  Accuracy Ø  Transparency Ø  Accountability Ø  Collaboration Ø  Communication	Internal and External Ø  Staff Ø  Board Ø  Public Ø  Government agencies   Prioritize Ø  Jersey Island Ø  SSMP Ø  CIP Ø  Long-term planning   Deliver timely services Recognize that the district is publicly funded Ability to be flexible and adaptable Implement plans and complete projects Have a short and long-term strategy Measure results:  goal setting Own your mistakes and learn from them  **** Safe to admit mistakes
TRANSPARENCY	COLLABORATION
No hidden agendas Open, honest, clear communication Trust that there won’t be retribution Clear Expectations  **** Provide cost information and accurate forecasting Clear consistent messaging to all (public and staff) Shared information complete and objective (pros and cons) Eliminate silos Ability to ask for help Open houses	Openness to communication Listen with positive intent Each team members carries own weight Common goal:  one mission Knowledge sharing Freedom to challenge:  healthy conflict Team building Shared responsibilities Shared recognition Working with other agencies Eliminate silos Mutual respect Goal of being efficient and effective Follow chain of command

 

 

Exercise:  What Does Success Look Like in 3 Years

 

1^st Tier Priorities

• Effective Policy and Procedures
• Comprehensive CIP Plan
• Plan for Jersey Island
• Purple Pipe
• Use for Recycled Water
• Creating a Culture of Excellence, Integrity, and Respect
• Operating Cost Model to Ensure Sustainability

 

2^nd Tier Priorities

• Income Producing Opportunities
• Employee Growth and Development
• Competitive Sewer Use Rates
• Leadership in the Community:  Relationship Development
• Partnering with Professional Organization at All Levels
• Employee Compensation

 

3^rd Tier Priorities

• Drought Solution to Stimulate Local Economy
• Plan for Midland Property
• Biosolids

 

Due to Time restraints, the Board resolved to move to a Part II and hold another special meeting to cover objective of:

• Core Functions
• Goals to Achieve

 

 

E.        Adjournment

There being no further business, President Scheer adjourned the special meeting at 12:00 p.m.

 

Minutes of the ISD May 24, 2016 Budget Workshop Special Meeting

MINUTES OF THE BUDGET WORKSHOP

 SPECIAL MEETING OF THE BOARD OF DIRECTORS

 OF THE IRONHOUSE SANITARY DISTRICT

May 24, 2016

 

The Ironhouse Sanitary District (ISD) Board of Directors met in Special Session to hold a Budget Workshop on Tuesday, May 24, 2016.

The place of meeting was the Ironhouse Sanitary District Office at 450 Walnut Meadows Drive, Oakley, California. 

 

1.         Call to Order  

President Contreras called the meeting to order at 9:05 a.m.

 

2.         Roll Call:

 

Members present:                    David Contreras, Chris Lauritzen, Susan Morgan, Michael Painter and Doug Scheer

 

Members absent:                     None

 

Staff/Consultants present:      Chad Davisson, General Manager

Susan Walde, District Secretary

Michael Welty, Utonomy, Inc.

Dave Dal Porto, Ranch and Levee Superintendent

Chris Christean, Plant Manager

Louis Solana, Maintenance Supervisor

 

Interested parties present:       None

 

 3.        Approval of the Agenda

M/S M. Painter, C. Lauritzen and the Board voted to approve the agenda.

 

 4.        Public Comment – There were no comments from the public in attendance.

 

 5.        BUSINESS BEFORE THE BOARD

 

            A.  ISD DRAFT BUDGET WORKSHOP FOR YEAR 2016/2017

 

Mr. Chad Davisson stated that the FY 16/17 Operating Budget would be reviewed.  The Capital Improvement Plan (CIP) will be prepared and presented to the Board at a later date after the Board adopts the budget in June.  Staff is also preparing a FY 17/18 Operating Budget to bring back to the Board in July or August for review. 

Director Contreras thanked staff for the great layout and presentation given for the Board to review.  The documents and lay out were very helpful in reviewing the budget. 

 

Mr. Welty gave a presentation to the Board and staff reviewing each category with detail on each item.  The following are items with significant change that were discussed with the Board.

 

Revenue Significant Items and Assumptions:

 

Sewer Service Charge:

The budget assumes no increase in the existing rate of $658 and 51,110 EDUs to begin FY 16/17 with 150 estimated new connections in FY 16/17.

Capacity Fees:

The budget assumes 150 new connections and an increase of 2.9% in the plant capacity and Trunkline capacity fee.  These fees were approved at the May 3, 2016 Board meeting and will be go into effect July 5, 2016.

Grant Revenue:

FY 15/16 had $284,000 for grant revenue provided by the Bay Area Air Quality Management District for purchase of a JD8370 RT tractor.  Grant funds are not expected in FY 16/17.  Grant Revenue budget for FY 16/17 is zero.  Mr. Davisson informed the Board that staff is pursuing grant funding opportunities and will bring them back to the Board for approval as they are identified.

Director Contreras is very interested in continuing to pursue grant revenue.  Board discussion was held on the possibility of collecting revenue from dirt received on Jersey Island.

 

Expenses Significant Items and Assumptions:

 

Salaries and Related Expenses:

Mr. Davisson reported that the budget reflects the salary for the new position of Assistant General Manager and a vacancy for an Operator 3 at the WRF.  Staff is working with HR consultant to review options for compensation.  The current CPI is 2.7% and staff is proposing a one-time “supplemental compensation” of 3%.  This would not be an increase to employees’ base salary but would be a one-time supplemental payment only in FY2016/17.  Last year, in FY2015/16, COLA’s were given July 1, 2015 of 3% and January 1, 2016 of 2%.  It is Mr. Davisson’s understanding that this was an agreement between interim General Manager, Phil Batchelor and the Board, and was intended to address multiple years where there were no COLA increases.  Mr. Welty reported that for every 1% COLA given, there is a cost of roughly $31,000. 

Mr. Davisson reported that it is the overall vision of the GM to get to a core of highly efficient employees, and provide commensurate compensation.   

Director Scheer asked the GM if we have employees that deserve more compensation and others that are over compensated.  Mr. Davisson reported that he plans to complete a comprehensive study to determine compensation levels using appropriate comparators, etc.  He will have organizational goals, performance goals and compensate staff commensurate with their level of ability.  Director Contreras supported the General Manager’s concept.  Director Contreras stated that he does not want to invest money in a study such as the Koff study.  He supports, for FY2016/17, the General Manager’s proposed one-time supplemental compensation.  Director Contreras further stated that he thinks staff is deserving and recognizes their work. 

Director Scheer is supportive of suggested increases if the amounts are given for performance.

Director Lauritzen stated he is supportive of a system that the BOD and staff understand.  He has asked staff to remind managers to complete performance reviews.  He understand the one time compensation adjustment.  He stated that the District has not increased the cap on medical coverage for employees for a few years.  He is in favor of a 4% increase because everyone has worked hard.  He would like to consider increasing the medical coverage when it is reviewed again.  He also would like to consider having an option for staff who can get medical coverage through their spouse.

Mr. Davisson responded to the Board that the issue of the medical insurance cap and dual medical coverage has not been brought to him as a concern, as of yet, and would like the opportunity to complete the compensation analysis and work with employees to best understand the areas of compensation that are the most significant to them.  Mr. Davisson also requested that the Board support the General Manager’s recommendations related to compensation. 

Director Contreras stated he wants to compensate and recognize the hard working employees.  He made a recommendation to move forward with the recommendation made by the General Manager, fund a three percent supplemental compensation and authorize the General Manager to work with staff to give as a one-time payment while conducting a comprehensive compensation study.

Mr. Davisson thanked the Board and appreciates the Board for their support recognizing staff. 

 

Election Expense:

The budget estimates an expense of $22,000 for election of three Board of Directors.

 

Service Agreements:

The budget reflects a decrease of $39,000 for pond management.

 

Office Telephone and Internet:

The budget is reduced by $25,800 principally due to change of internet carrier.

 

Fuel:

The budget reflects a decrease of $22,900 due to actual costs.

 

Collection System and Trouble Spot Repair:

The collection system repair and trouble spot repair line items will now be combined and reflected only as collection system repair.  The combined items will be reduced by $100,000 but showed in the CIP as these expenses require capitalization.

 

Ground Maintenance:

FY 16/17 is being reduced by $35,000; FY 15/16 included a one-time Jersey Island clean-up cost of $40,000.

 

Road Repair:

Reduced by $50,000 due to Jersey Island road repair scheduled every other year.

 

WRF Maintenance and Repair:

Increased by $20,000 to reflect repair costs due to equipment aging.

 

Accounting Services:

The budget is being increased by $12,000 for special projects similar to the Jersey Island cost analysis.

Mr. Welty reminded the Board that services for RD830 are billed separately.

Director Contreras thanked Mr. Welty and stated he does a great job and brings value to the District.  He reminded the Board that the services provided by Mr. Welty were initially intended to be “temporary”.  He also stated that he would like travel and lodging expenses to be included in the total fee.

Mr. Davisson stated the financial management of the District is essential for a $10 million dollar business.  He recognizes the value Mr. Welty brings to the District and pointed out the cost savings to the District for the services provided by Mr. Welty, as compared to full-time benefitted staff.

 

Engineering Services:

This is a new line item to reflect contract services.

 

Geotechnical Services:

Budget is reduced by $15,000 to reflect actual costs.

 

Grant Development:

Costs not budgeted

 

HR Analysis and Services:

The budget for HR services is being increased by $25,000 to reflect the estimated cost as using Regional Government Services for contracted HR services.

 

Information Technology:

Budget is being increased by $28,500 to reflect additional services, which included website maintenance series.

 

Other Contracted Services:

This item is reduced by $35,000.  In FY 15/16, $50,000 was budgeted for assessment items.

 

Legal Counsel:

The budget is being reduced by $135,000, which is reflective of the District’s effort to better manage projects assigned to legal counsel and minimize the usage of attorneys.

 

Other Income Significant Items and Assumptions:

 

Cattle Sales:

Budget is being reduced by $65,000 to reflect current market prices.

 

Interest and Dividend Income:

Budget reflects an anticipated increase of $73,000 for interest and dividend income to reflect investment of cash reserves in CalTrust and fixed income securities.

 

Director Scheer stated that in the four years he has been on the Board of Directors the budget has come leaps and bounds.

 

Mr. Davisson will be bringing a 1-year budget back to the BOD in June and then in July or August a Capital Improvement Plan (CIP) budget and a second year budget to adopt.  Staff will also be developing a 5-year rate study and bring back to the Board at a later date within the Fiscal Year.

 

 6.        Adjournment

President Scheer adjourned the Workshop meeting at 11:45 a.m. to Tuesday, June 7, 2016 at 7:00 p.m. for the next scheduled regular meeting, in the Ironhouse Sanitary District offices at 450 Walnut Meadows Drive, Oakley, California.